Atlas Energy Solutions Insiders Placed Bullish Bets Worth US$12.1m

Multiple insiders secured a larger position in Atlas Energy Solutions Inc. (NYSE:AESI) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Atlas Energy Solutions

In the last twelve months, the biggest single purchase by an insider was when Founder & Executive Chairman Ben Brigham bought US$5.0m worth of shares at a price of US$23.00 per share. That means that an insider was happy to buy shares at above the current price of US$13.46. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 600.11k shares worth US$12m. But insiders sold 316.50k shares worth US$7.3m. In the last twelve months there was more buying than selling by Atlas Energy Solutions insiders. The average buy price was around US$20.15. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Atlas Energy Solutions

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Atlas Energy Solutions Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Atlas Energy Solutions. In total, insiders bought US$715k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Atlas Energy Solutions Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Atlas Energy Solutions insiders own 26% of the company, currently worth about US$423m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Atlas Energy Solutions Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Atlas Energy Solutions insiders are well aligned, and quite possibly think the share price is too low. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Atlas Energy Solutions (of which 1 is significant!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.